Tag Archives: crown corp

FOR IMMEDIATE RELEASE: Vancouver Not Vegas calls for Michael Graydon to be removed from Paragon Gaming

Vancouver, July 11, 2014: Following the report of the BC government’s internal auditor, Vancouver Not Vegas renews its February 13th call for the Gaming Policy and Enforcement Branch (GPEB) to block PV Hospitality (a Paragon Gaming-related company) from employing Michael Graydon.

“The government has the power to halt Mr. Graydon’s employment with Paragon and must act decisively to protect the public trust and integrity of the gaming industry,” says Ian Pitfield, a retired lawyer and member of Vancouver Not Vegas.

“The public can’t trust Michael Graydon, it’s that simple.” says Sandy Garossino, spokesperson for Vancouver Not Vegas. “This goes far beyond his $125,000 severance package. He will guide PV Hospitality through the BCLC development subsidy program, which might amount to as much as $100 million or more. The fox is in charge of the henhouse, and our government has to step in.”

The public interest must be protected in the face of the auditor’s report and statements by BCLC board chair Bud Smith, which demonstrate that Mr. Graydon:

Violated BCLC’s conflict of interest guidelines

Provided incomplete or inaccurate information to the BCLC board

Breached the no-contact provision of his resignation settlement

Maintained access to confidential BCLC material for 10 days post-employment

The auditor further found that other casino service providers expressed concern that Mr. Graydon’s knowledge could provide an advantage to Paragon Gaming.

In related news, Paragon Gaming currently co-owns and manages the Eagle River Casino, a small truck stop operation in Whitecourt Alberta, which has filed for bankruptcy, owing $100 million to creditors.

Brazen Conflict of Interest by Former CEO Exposes Feeble Governance at BCLC

The resignation of Michael Graydon as CEO of BC Lottery Corporation (BCLC) to assume the role of president of PV Hospitality ULC in which Paragon Gaming Corporation is a partner raises serious conflict of interest and BCLC governance concerns says Vancouver Not Vegas.

“It’s a grave concern that the BCLC, which oversees an industry requiring the highest standard of integrity and transparency, would permit a departure of this kind from expected ethical standards”, says founding member Ian Pitfield.

“The Federal Government applies post-employment restrictions to public office holders. Why should the Province not insist on the same restrictions for senior employees of Crown Corporations?” Pitfield asks.

The Vancouver Not Vegas coalition calls for an investigation into the circumstances surrounding this move, and asks the BC government to answer the following questions regarding this and other governance issues within BCLC (BC Lottery Corp):

When did Michael Graydon begin employment discussions with Paragon, a company of which he was the regulator?

What assurances or commitments did he make to Paragon, his future employer, while he was in discussions with them concerning compensation, terms, etc?

What knowledge did the BCLC have of employment discussions between Graydon and Paragon, and did it approve it?

Why, after BCLC chair Richard Turner bought shares in Paragon Gaming in 2004, did the BCLC not institute a firewall policy preventing employment or financial relationships between senior executives. board members and regulated corporations?

Senior management at BCLC are in possession of significant confidential financial information pertaining to all gambling operators in BC. It’s unthinkable that it has failed to safeguard that trust by preventing conflicting employment agreements for senior executives.

It is unthinkable that BCLC has failed to safeguard the trust by prohibiting key employees from assuming employment with regulated gaming companies for a period of two or three years following retirement or resignation. But today’s news is only one chapter in a history of governance breakdowns.

Documented lapses in governance at BCLC include:

Unprecedented $700K FINTRAC fine in 2010

Documented loan-sharking, money-laundering in casinos

BCLC Chair Richard Turner’s acquisition of shares in Paragon in 2004, and subsequent move to become director.

Today’s revelation, combined with a repeated pattern of inept governance points to a rudderless corporation unable to exercise basic control over its key operations.

Read the petition

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Our Supporters against the mega-casino

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WHERE THINGS STAND:
We had a victory in 2011, but what we defeated was gambling expansion from 600 to 1200 slot machines. Soon after, Vancouver City Council nevertheless passed the building at its proposed massive size, ripe for future expansion. Now, in light of the 2013 Kendall Report which shows a doubling of severe gambling addiction in BC in only 5 years, we believe City Council must immediately institute harm reduction measures if it plans to allow the relocation and building of Edgewater Casino at BC Place Stadium, in easy reach of residents and young people. Proximity to casinos is a major factor in rising addiction rates.